The impact of migration to the EU on labour shortages in the Western Balkans. Policy implications

Abstract

This policy brief is D2.3 (T3.3) of the Horizon Europe project 'Global Strategy for Skills, Migration and Development' (GS4S). Emigration from the Western Balkans (WB) to the European Union (EU) has long been a significantsource of workers for the EU. In light of population ageing and the twin (digital and green)transitions in the EU, and since they are candidates for EU membership, the WB countries’contribution may be more relevant than ever. At the same time, the outflow of workers from theWB has exacerbated labour and skill shortages across occupations in the region, depleting thetalent pool needed for economic development. This challenge – while also an opportunity –requires immediate attention. Based on new research findings, this policy brief highlightsincentives that encourage (i) emigration from the WB region and (ii) immigration to EU countries.In particular, it examines the impact of emigration on labour shortages in the WB and proposestimely policy recommendations for WB and EU policy makers. The policy recommendations arein three main categories: (i) industrial policy to address labour shortages and boost technologicaldevelopment, (ii) migration and skills development policies, and (iii) improving data quality formarket research and academia.